Las Vegas Retail Market Report

Demographic headwinds emerge amid economic uncertainty. The Las Vegas retail sector has posted historically low vacancy rates over the past two years, as well as rent growth above the national average. Demographic tailwinds are fading, however, as population and household income growth slow across the metro. Along with softening consumer spending nationwide, particularly in tourism, these trends have contributed to local job losses. As of June, the metro’s unemployment rate was 5.7 percent — the highest among major U.S. metros. Despite these headwinds weighing on retail net absorption, historically tight vacancy should reinforce steady rent gains.